4th worst week for S&P. What's next?
So it was a pretty hard week for the market. S&P lost 11.5% during this week. It's 4th worst week (Monday to Friday) for S&P for the last 50 years from 1970.
Question is what will happen next, let's look at the worst weeks in history and what happened the next week after the drop:
1. 2008-10-06 → 2008-10-06; P&L: -18.2%; Next Week P&L: 4.6%
2. 1987-10-19 → 1987-10-19; P&L: -12.2%; Next Week P&L: 1.44%
3. 2001-09-17 → 2001-09-17; P&L: -11.6%; Next Week P&L: 7.78%
4. 2000-04-10 → 2000-04-10; P&L: -10.54%; Next Week P&L: 5.75%
5. 2008-09-29 → 2008-09-29; P&L: -9.4%; Next Week P&L: -18.2%
6. 1987-10-12 → 1987-10-12; P&L: -9.12%; Next Week P&L: -12.2%
7. 1974-09-09 → 1974-09-09; P&L: -8.71%; Next Week P&L: 7.58%
8. 2008-11-17 → 2008-11-17; P&L: -8.39%; Next Week P&L: 12.03%
9. 2002-07-15 → 2002-07-15; P&L: -7.99%; Next Week P&L: 0.6%
10. 1986-09-08 → 1986-09-08; P&L: -7.91%; Next Week P&L: 0.67%
As you can see in only 2 cases from 10 drop continued next week, in all other cases market was flat or recovered the next week.
So I think if there won't be any other bombshells in the news related to coronavirus, markets should be relatively calm.
However I don't like coronavirus dynamics in Europe and US, so there is a chance to worsen panic.
If you want to track coronavirus statistics you can use Worldometers website: worldometers.info/coronavirus/
Question is what will happen next, let's look at the worst weeks in history and what happened the next week after the drop:
1. 2008-10-06 → 2008-10-06; P&L: -18.2%; Next Week P&L: 4.6%
2. 1987-10-19 → 1987-10-19; P&L: -12.2%; Next Week P&L: 1.44%
3. 2001-09-17 → 2001-09-17; P&L: -11.6%; Next Week P&L: 7.78%
4. 2000-04-10 → 2000-04-10; P&L: -10.54%; Next Week P&L: 5.75%
5. 2008-09-29 → 2008-09-29; P&L: -9.4%; Next Week P&L: -18.2%
6. 1987-10-12 → 1987-10-12; P&L: -9.12%; Next Week P&L: -12.2%
7. 1974-09-09 → 1974-09-09; P&L: -8.71%; Next Week P&L: 7.58%
8. 2008-11-17 → 2008-11-17; P&L: -8.39%; Next Week P&L: 12.03%
9. 2002-07-15 → 2002-07-15; P&L: -7.99%; Next Week P&L: 0.6%
10. 1986-09-08 → 1986-09-08; P&L: -7.91%; Next Week P&L: 0.67%
As you can see in only 2 cases from 10 drop continued next week, in all other cases market was flat or recovered the next week.
So I think if there won't be any other bombshells in the news related to coronavirus, markets should be relatively calm.
However I don't like coronavirus dynamics in Europe and US, so there is a chance to worsen panic.
If you want to track coronavirus statistics you can use Worldometers website: worldometers.info/coronavirus/
💼 Hire me: qntly.com/hirepine
💻 Online Courses: qntly.com/courses
📝 Trials: qntly.com/trial
📖 Docs: qntly.com/docs
📰 Newsletter: qntly.com/news
𝕏: qntly.com/x
📩Telegram: qntly.com/tel
💻 Online Courses: qntly.com/courses
📝 Trials: qntly.com/trial
📖 Docs: qntly.com/docs
📰 Newsletter: qntly.com/news
𝕏: qntly.com/x
📩Telegram: qntly.com/tel
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.